Bitcoin’s Value Drops Below $90,000
Bitcoin has recently fallen below the $90,000 threshold, currently trading at approximately $87,050.81 (£68,748.49) as of 3:15 PM GMT. This marks its lowest valuation since mid-November and represents a significant decline of nearly 20% from its peak value. The cryptocurrency reached an all-time high of $109,114 (£86,191.88) on January 20, coinciding with President Donald Trump’s inauguration. This sharp decrease is occurring amid a broader selloff in the cryptocurrency market that has intensified in recent hours. In just the past 24 hours, Bitcoin’s value has plummeted by 7.5%, marking the most severe drop during Trump’s presidency to date. This downturn follows a period when Bitcoin had experienced notable gains attributed to Trump’s pro-cryptocurrency stance.
Broader Cryptocurrency Market Experiences Major Selloff
The recent selloff has significantly impacted other prominent cryptocurrencies, with Ethereum, which ranks second in market capitalization, experiencing a decline of over 11% in the last day, now priced at $2,390. The overall crypto market is facing a particularly harsh downturn, with XRP, associated with Ripple Labs, crashing by 14.3% in the same timeframe. Binance’s BNB token has also taken a hit, dropping by 6.4%, while Solana’s SOL has suffered a substantial decrease of 15%. Several factors contribute to the current turmoil in the cryptocurrency sector.
Factors Contributing to the Cryptocurrency Downturn
A significant security breach at the Bybit exchange has shaken market confidence, with hackers reportedly stealing $1.5 billion in what is being called the largest digital theft in history. Additionally, controversies surrounding memecoins have further diminished trust within the industry, particularly following the launch of coins by both President Trump and Melania Trump last month. The cryptocurrency market had been riding high on the back of Trump’s return to office, but this momentum appears to have shifted.
Market Sentiment Affected by Various Scandals
“The Bybit hack is just the latest incident in a series of events, including dubious memecoin launches, that have revived negative memories for those involved in the crypto market,” commented Caroline Mauron, co-founder of Orbit Markets. A scandal involving Argentina’s President Javier Milei and memecoins has also contributed to the negative sentiment among investors. Furthermore, ongoing fears of a potential trade war have added to the volatility in the stock market over the past month.
Tech Stocks Hit Hard Amid Market Fluctuations
Tech stocks have particularly felt the brunt of these fluctuations, with Nvidia experiencing a drop of over three percent on Monday, while Palantir has seen a staggering 29% loss since reaching its peak just last week. Analysts believe that Trump’s tariffs have exacerbated market fears, impacting both cryptocurrency and traditional equities. David Morrison, a senior market analyst at Trade Nation, noted, “US stock index futures were weaker in early trading today,” indicating a continuation of the previous day’s lackluster performance, primarily driven by tech stocks.
Market Vulnerability Continues as Investors React
The decline reflects a trend that began with softer price movements on the previous day. US stock indices showed initial strength on Monday morning but quickly reversed as the exchanges opened for trading. While there was a brief rally in the afternoon, it was followed by another selloff as the day closed. Notable losses were recorded among major tech firms. Nvidia has dropped over three percent and lost another one percent in early trading today. The generative chip manufacturer is now down more than eight percent since the market closed on Thursday. Similarly, Palantir, which had been a favorite among investors, is now facing significant losses, having dropped 29% since last week’s peak.
